If Demand for Product a Were Forecast at 1,000,000 Units

question 39

Short Answer

If demand for product A were forecast at 1,000,000 units for the coming year and your factory has trained labor and equipment sufficient to produce 150,000 units per month, is the capacity cushion positive or negative? ____________________

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Definitions:

Necessity-based Entrepreneurship

Entrepreneurial activities that are initiated as a result of a lack of viable employment options, leading individuals to start their own business to sustain themselves.

Quest for New Opportunities

The proactive and continuous search for new avenues for growth, improvement, or competitive advantage.

Absolute Need

An absolute need refers to a requirement that is essential for survival or to maintain a certain quality of life, without which a significant detriment occurs.

Growing Too Fast

A scenario where a business expands at a rate that may be unsustainable, leading to potential operational, financial, or quality control problems.